Financial Results for 1 Half of FY2011 - Nichigo · Financial Results for ... zAfter printing, the...
Transcript of Financial Results for 1 Half of FY2011 - Nichigo · Financial Results for ... zAfter printing, the...
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Financial Results for 1st Half of FY2011
The Nippon Synthetic Chemical Industry Co., Ltd.
New Mid-Term Management Plan,“Double15” , is underway
November 17, 2011
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05
1015202530
Q1/10 Q2 Q3 Q4 Q1/11 Q20
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2
3(¥:Billion) Sales Operating income
Business Results of 1st Half FY2011
2.8 2.8 2.12.2
◆ Q1 steady, Q2 slowing down“OPL Film” declined due to customers destocking.“Soarnol” did well in the European and North American markets,and is increasing in the Asian market.
◆ Profit down due to very strong yen; sale price spread worsening
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(¥:Billion)
2.21.7
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0102030405060
1st Half '09 2nd Half 1st Half '10 2nd Half 1st Half '11 2nd Half
0123456Sales Operating income
Business Forecast of 2nd Half FY2011
5.15.5 5.6 3.94.3
(¥:Billion) (¥:Billion)
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4.0(forecast)
◆ Uncertainty continues for LCD materials and others.“OPL Film” should recover from destocking, and larger volume isforeseen for the 2nd half.“Soarnol” will continue strong in the European and North Americanmarkets, and also continue to grow in the Asian market.
◆ Strong yen will continue.
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020406080
100120
FY07 FY08 FY09 FY10 FY11
024681012Sales Operating income
Annual Cash Dividends (JPY) 7 7 10 12 12
Interim Cash Dividends (JPY) - - 4 5 6
4.3
7.7
10.7
8.010.0
Business Forecast of FY2011
(¥:Billion) (¥:Billion)
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(forecast)
1.”OPL Film”1.”OPL Film”
Efforts to Achieve “Double 15”(1)
◆ 5th new line (15 million ㎡/year)Scheduled for completion January-March 2012;our first facility to handle ultra-wide film
◆ Future constructionImmediate demand is stagnant.Positioning as growth area in the medium to long term,with expansion plans on the horizon
◆ Pressure-sensitive Adhesive resinsExpanding “Coponyl” and “Shikoh” overseas (including M&A)Planning local production and sales of emulsionwith Chinese Manufacturer
◆ Nichigo G-PolymerFocus on targets and search for volume zones
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2.Building Third Pillar2.Building Third Pillar
3.Business focus and selection3.Business focus and selection
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◆ Restructure Fine Chemicals businessWithdraw unprofitable products (Ketene derivatives, etc.)
◆ Launch new products“ORGA” (glass replacement optical sheet)
◆ Strengthen and increase competitiveness of existing PVOH films“Hi-Selon” Expand overseas“Bovlon” Agricultural film, etc.
Efforts to Achieve “Double 15”(2)
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Consolidated Results
1st Half FY10
1st Half FY11 Diff.
Sales 46.4 44.5 ▲1.8 (▲ 4.1%)
Operating income 5.6 3.9 ▲1.7 (▲30.3%)
Operating income ratio 12.2% 8.9% ▲ 3.3%Ordinary income 5.1 3.4 ▲1.6 (▲32.8%)
Net profit 2.9 1.8 ▲1.1 (▲38.0%)
<Topics>Non-operating profit and loss
Exchange-rate losses 0.43 0.51 ▲0.08Extraordinary loss
Loss from securities revaluation 0.55 0.60 ▲0.05
(¥:Billion)
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Sales Operating income1st Half
FY101st Half
FY11 Diff. 1st Half FY10
1st Half FY11 Diff.
①Synthetic Resin 33.2 31.5 ▲1.6 5.6 3.9 ▲1.6②Acetyl & Fine
Chemicals 11.5 11.1 ▲0.4 0.0 0.0 +0.0③Chemical
Products 44.8 42.7 ▲2.0 5.7 4.0 ▲1.6
④Others 1.6 1.8 +0.1 0.1 0.1 +0.0
⑤Common Cost - - - ▲0.1 ▲0.2 ▲0.1
Total ③~⑤ 46.4 44.5 ▲1.8 5.6 3.9 ▲1.7
Business Summary by Segment (1)
(¥:Billion)
Synthetic ResinSynthetic Resin
Acetyl and Fine ChemicalsAcetyl and Fine Chemicals
Business Summary by Segment (2)
◆ “OPL Film”Affected by destocking from July, down from last year
◆ “Soarnol”Continued good results in European and North Americanmarkets, increased volume in Asian market
◆ Pressure-sensitive adhesive, functional coatingsLower sales than last year in information and communicationtechnology and electronic materials
◆ Sales have fallen for Fine Chemical products.
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0
1
2
3
4
5
6
7
8
9
▲0.6+5.6
1st HalfFY11
Operating income
VolumeFixed costs
Raw materials
price
Includingexchange
effects
1st HalfFY10
Operating income
Analysis of Operating Income
Sales price
▲2.0
+3.9(▲0.3)
▲0.9
(¥:Billion)
+0.6
+1.2
Movingaverage,
etc
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1st HalfFY10
1st HalfFY11 Diff.
CAPEX 2.0 3.8 +1.8Depreciation 3.2 3.2 +0.0R&D Expenses 1.3 1.5 +0.2JPY/US$ 89 80 ▲9JPY/EURO 114 114 ±0※ Average rate
Naphtha price (JPY/KL) 46,200 57,000 +10,800※ Average price
CAPEX, Depreciation, Exchange rate, and Naphtha price
(¥:Billion)
Liabilities
Net assets
Retained earnings+1.1、Currency Exchange adjustments+1.0
Current assets
Fixed assets
Balance Sheet
Assets Liabilities andshareholder’s equity
Equity 54.9 57.0 +2.1Equity Ratio 56.2% 57.3% +1.1%Debt 13.5 11.8 ▲1.7D/E Ratio 0.24 0.21 ▲0.03
Period end exchange rate for Overseas subsidiaries(yen)
End of Dec. 2010 End of Jun. 2011
US$ 81 81€ 108 117
*Exchange rate effect is ¥1.3 billion of total asset increase.14
97.8 99.5 +1.7 97.8 99.5 +1.7
48.6 49.5 +0.9 42.9 42.5 ▲0.4
49.1 50.0 +0.9 54.9 57.0 +2.1
End ofFY10
End of1st Half FY11
Diff.
End ofFY10
End of1st Half FY11
Diff.
(¥:Billion)
1st Half FY10
1nd Half FY11
Cash Flow fromoperating activities 7.0 4.0
Pretax profit variance▲1.8Operating Capital increase▲1.2
Cash Flow frominvesting activities ▲2.2 ▲3.1
Fixed asset acquisition▲1.0
Cash Flow fromfinancial activities ▲6.9 ▲2.6
Debt repayment decrease+4.3
Cash and cash equivalentsat beginning of period ▲2.3 ▲1.7Cash and cash equivalentsat end of period 9.4 6.2
Cash Flow
(¥:Billion)
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1st Half Ave. 2nd Half Diff.JPY/US$ 80 77 ▲3JPY/EURO 114 105 ▲9
1.Exchange rate1.Exchange rate
Assumptions of 2nd Half FY2011
1st Half Ave. 2nd Half Diff.Naphtha 57,000 54,000 ▲3,000
2.Naphtha price (JPY/KL)2.Naphtha price (JPY/KL)
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1stHalfFY11
2ndHalfFY11
FY11 FY10 FY09
Sales 44.5 44.4 89.0 91.2 90.0Operatingincome 3.9 4.0 8.0 10.0 10.7Operating income ratio 8.9% 9.1% 9.0% 11.1% 12.0%Ordinary income 3.4 3.9 7.4 9.4 10.0Net Profit 1.8 2.1 3.9 6.1 5.7Net Profitper share (yen) 18.59 21.45 40.04 62.94 59.06Cash dividendsper share (yen) 6 6 12 12 10
Consolidated Earnings forecast of FY2011
(¥:Billion)
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Sales Operating income
FY10results
FY11forecast Diff. FY10
resultsFY11
forecast Diff.
①Synthetic Resin 64.9 63.8 ▲1.1 10.2 8.1 ▲2.1②Acetyl & Fine
Chemicals 22.9 21.6 ▲1.3 ▲0.1 0.1 +0.2③Chemical
Products 87.8 85.4 ▲2.4 10.1 8.2 ▲1.9
④Others 3.3 3.6 +0.2 0.2 0.2 +0.0
⑤Common Cost - - - ▲0.2 ▲0.4 ▲0.1
Total ③~⑤ 91.2 89.0 ▲2.2 10.0 8.0 ▲2.0
Consolidated Earnings forecast of FY2011by segment
(¥:Billion)
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0
2
4
6
8
10
12
14
▲3.7
+10.0
FY11Operating
income
Volume
Movingaverage,
etc.
Rawmaterials
priceFY10
Operatingincome
Analysis of Operating Income
Salesprice
+0.5
+8.0
+1.6
+1.2▲1.6
(¥:Billion)
Fixed costsincluding
exchangeeffects
(▲0.5)
FY10 FY11 Diff.CAPEX 6.7 6.7 -
Depreciation 6.5 7.0 +0.4
R&D Expenses 2.8 3.4 +0.6
CAPEX, Depreciation, and R&D Expenses
(¥:Billion)
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ORGATM (Glass replacement optical sheet)
<New Transparent Polymer Optical Sheet!>Light, tough, good workabilityHeat resistant to more than 200℃, pencil hardness >3H (max. 7H)
Scratch-resistant, chemical-resistantBest characteristic: as transparent as glass, and zero optical strain
Low profile film type 0.2 mmT Thick sheet type 1.0 mmT
Single sheet plastic with this kind of performance did not exist before.
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ORGATM Application
Scratch-resistance・・・Cover sheet (Cover)Toughness ・・・・・・・・・WindowHigh heat resistance and transparency
・・・Touch panel (Substrate with ITO)
Examples of applications that make the most of performance<smartphone>
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ORGATM The glass Replacement: Performance①
Two main types: rigid and flexible, and both requireopposing performanceRigid “ORGATM” targets high definition devices using glass.
Heat resistance(℃)
Surfacehardness
0 100 200 300 400 500
7H
6H
5H
4H
3H
2H
H
HB
B
Glass
ORGA
PMMA
PC
PI
DAP
Flexible area
Rigid area
PET
Cover sheet(Cover) Window Touch panel
*Without sufficient heat resistanceand surface hardness, printingand electrode processing aredifficult
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Reinforcedglass ORGA Polycarbonate PMMA
Transparency ○ ○ × △
Surfacehardness
○ △ × ×
Heatresistance
○ ○ × ×
Solventresistance
○ ○ × ×
Workability × ○ ○ ○
Safety × ○ ○ ○
We are focusing on developing more of the capabilities required to grow with the market.
ORGATM The glass Replacement: Performance②
ORGATM Workability
Printing and transparent electrode deposition can be done directlyon the sheet.
*Ordinary plastic needs an under layer and pre-treatment.After printing, the sheet can be cut into the final shape.
*Reinforced glass has to be cut one sheet at a time, then printed or processed.
Laser cutting27
Print & deposition
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ORGATM Sales Development
Adoption for smartphone cover sheets (covers)Good evaluation results for window and touch panel applicationsCurrent supply capacity translates into about 2 million smart phones / year.We plan to maintain supply capacity by expanding facilitiessequentially in line with sales
Our aim is to target the market for reinforced glass replacement using applications that make the most of “ORGA”’s unique performance.
Solution by Chemistry The amounts in this report are rounded down when less than a
unit; percentages, etc. are round off.
Further, the cumulative six months of the first and second quarters are the first half, and the cumulative six months of the third and fourth quarters are the second half.
The business forecast and predictions in this report are calculated based on the information available at the time of writing. It is possible that the actual results may differ due to a variety of factors.
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Outlines of Segments
Chemicals
Others
SyntheticResins
Acetyl & FineChemicals
PVOH Resins, Films
Acetyl Chemicals
EVOH Resins
Adhesive Resins
Fine Chemicals
Feature・Water solubility・adherence・Film forming properties, etc.
◆What is “Gohsenol TM”?
The Mizushima Plant 40,000 tonnes / yThe Kumamoto Plant 30,000 tonnes / yTotal 70,000 tonnes / y
Used as raw material for PVOH films・optical polarized PVOH
film, etc.
Glass
Glass
PVOH(a materials of PVB films)
PVOH (Polyvinyl Alcohol : Gohsenol TM)
◆”Gohsenol TM” Production capacities
◆Main Application
Used as raw material for the bonding middle layer in safety glass for windshields
Used as a surface coating agent for information industrial paper・heat sensitive paper・ink jet recording paper,
etc.
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2003 12 million sq. meters / y The Ogaki Plant2005 13 million sq. meters / y The Ogaki Plant2008 15 million sq. meters / y The Kumamoto Plant 2009 15 million sq. meters / y The Kumamoto Planttotal 55 million sq. meters / y *2012 15 million sq. meters / y (plan) The Kumamoto Plant
◆OPL Film TM Production capacities
To make polarizing film, OPL Film TM for polarizer is inserted between two layers of protective film called TAC film, and adherently processed to affix to LCD panel.
Optical Polarized PVOH Film : OPL Film TM
◆What is OPL Film TM ?
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Feature・High gas barrier・Fragrance preservation・Transparency, etc.
The Mizushima Plant 10,000 tonnes / yNOLTEX (U.S.A.) 20,000 tonnes / yNIPPON GOHSEI UK 15,000 tonnes / yTotal 45,000 tonnes / y
Soarnol TM is a package for preserving flavor and freshness.
Polyethylen EVOH
EVOH
Polyolefin
Polyolefin
Adhesive resin
Adhesive resinEVOH
Nylon
Nylon
EVOH : Soarnol TM
◆What is EVOH ?
◆Soarnol TM Production capacities
◆Main application
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・Adhesive resin for polarizing film for LCD・Masking tape for surface protection
Glossy retension and surface protection for CDs, DVDs, mobile phones and ATM touch-sensitive panels
・Temporarily immovable tape・Masking tape for surface protection
Cable coating and adhesion for copying machine and facimile machine
Pressure Sensitive Adhesives and Functional Coatings◆Main application for LCD
TAC film
PVOH film
Adhesive
Protective tape
TAC film
Release film
◆Main application for Semiconductor
◆Main application for Hard Coating ◆Main application for recording media
Silicon crystal
Back grind tape
Back grind process sheet
Dicing process
UV irradiate
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Soarus
NOLTEX
NIPPON GOHSEI Europe(Sales, Technical service)
NIPPON GOHSEI UK
(Production of Soarnol)
NIPPON GOHSEI
NIPPON GOHSEI THAILAND
NICHIGO SHANGHAI
Overseas Bases
(Sales, Technical service)
(Sales, Technical service)
(Production of Soarnol)
(Sales, Technical service)
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¥:Billion FY06 FY07 FY08 FY09 FY10
Sales 95.8 109.6 100.9 90.0 91.2
(Synthetic resins) 58.6 68.7 64.5 65.0 64.9
(Acetyl and Fine chemicals) 33.3 36.6 32.6 22.7 22.9
(Others) 3.8 4.1 3.7 2.2 3.3
Operating income 5.7 7.7 4.3 10.7 10.0
(Synthetic resins) 5.3 7.5 4.2 10.7 10.2
(Acetyl and Fine chemicals) 0.3 0.1 0.2 0.2 △0.1
(Others) 0.1 0.1 0.0 0.0 0.2
(Common costs) △0.1 △0.2 △0.2 △0.2 △0.2
Net profits 2.2 5.5 0.9 5.7 6.1
Total Assets 121.1 122.4 106.8 106.6 97.8
Debt 40.9 37.0 32.2 22.7 13.5
Net Assets 47.7 52.6 48.6 53.9 54.9
CAPEX 2.2 6.6 6.0 5.1 6.7
Depreciation 5.3 5.9 6.8 6.7 6.5
¥:Billion FY06 FY07 FY08 FY09 FY10
Japan 6.1 5.7 2.6 8.1 6.3
America 0.9 1.2 0.9 1.5 1.8
Europe △0.4 0.9 0.6 1.0 1.9
Asia △0.7 △0.3 ― - -
Total 5.7 7.7 4.3 10.7 10.0
Review of Operation(1)
Operating income by AreaFinancial Highlights
Exchange rate, Naphtha price¥ FY06 FY07 FY08 FY09 FY10
1$ 117.0 114.3 100.5 92.9 85.7
1€ 150.1 161.5 143.5 131.2 113.1
Naphtha Average 49,950 61,450 58,925 41,175 47,450
Net income profit per Share ¥ 23.58 56.57 9.48 59.06 62.94
Net Assets per Share ¥ 471.16 522.56 483.90 538.54 564.07
Cash dividends per Share ¥ 6.0 7.0 7.0 10.0 12.0
Stock price per Share ¥(March 31) 542 731 278 643 513
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Net Sales and Operating Income by SegmentFY2009 FY2010¥:Billion
Q1 Q2 1st
Half Q3 Q4 2nd
Half Total Q1 Q2 1st
Half Q3 Q4 2nd
Half Total
Sales 21.6 23.2 44.9 23.6 21.5 45.1 90.0 21.6 23.2 46.4 22.7 22.0 44.7 91.2
(Synthetic resins) 15.3 16.4 31.7 16.5 16.7 33.3 65.0 17.0 16.1 33.2 16.1 15.6 31.7 64.9
(Acetyl and Fine chemicals) 5.5 6.2 11.8 6.1 4.7 10.9 22.7 5.8 5.7 11.5 5.8 5.4 11.3 22.9
(Others) 0.7 0.5 1.3 0.9 - 0.9 2.2 0.9 0.7 1.6 0.7 0.9 1.7 3.3
Operating income 2.6 2.9 5.5 2.4 2.7 5.1 10.7 2.6 2.9 5.6 2.2 2.1 4.3 10.0
(Synthetic resins) 2.6 2.7 5.4 2.4 2.8 5.3 10.7 2.8 2.8 5.6 2.3 2.1 4.5 10.2
(Acetyl and Fine chemicals) 0.1 0.1 0.2 0.0 △0.0 △0.0 0.2 0.0 0.0 0.0 △0.0 △0.1 △0.1 △0.1
(Others) △0.0 0.0 △0.0 0.0 0.0 0.0 0.0 △0.0 0.0 0.1 0.0 0.0 0.1 0.2
(Common costs) △0.0 △0.0 △0.1 △0.0 △0.2 △0.2 △0.2 △0.0 △0.0 △0.1 △0.0 △0.1 △0.2 △0.2
Net profit 1.5 1.4 2.9 1.6 1.1 2.8 5.7 1.5 1.4 2.9 1.6 1.5 3.2 61
Review of Operation(2)
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48,800
57,80059,70061,60066,700
70,900
52,000
26,600
41,200
49,700
42,70045,100
52,400
59,00054,900
85,800
42,500
47,700
33,300
20,00025,00030,00035,00040,00045,00050,00055,00060,00065,00070,00075,00080,00085,00090,000
1Q/07 2Q 3Q 4Q1Q/08 2Q 3Q 4Q1Q/09 2Q 3Q 4Q1Q/10 2Q 3Q 4Q1Q/11 2Q 3Q
JPY
/K
LNaphtha Price (Q1/2007~Q1/2011)
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120121118113
10510596 94 94 92
86 83 82 8278
122126
117110108
9091
97
117113112111
133134133127
162163
158
164162
163
156
70
80
90
100
110
120
130
140
150
160
170
1Q/07 2Q 3Q 4Q1Q/08 2Q 3Q 4Q1Q/09 2Q 3Q 4Q1Q/10 2Q 3Q 4Q1Q/11 2Q 3Q
JP
Y
Exchange rate($、€)(1Q/2007~3Q/2011)
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Composition of Shareholders
•Authorized Shares 154,944,000•Outstanding Shares 97,411,269
(except 957,917 Shares held by NIPPON GOHSEI)•Number of Shareholders 5,689
Lank Shareholder’s Name Rate
1. Mitsubishi Chemical Corporation 42.7%2. Japan Trustee Services Bank, LTD. (Trust Account) 8.6%
3. The Master Trust Bank of Japan, LTD. (Trust Account) 3.5%4. Japan Trustee Services Bank, LTD. (Trust Account 9) 2.4%
5. Mitsubishi Corporation 2.1%
6. Mizuho Corporate Bank, LTD. 1.2%
7. State Street Bank and Trust Company 1.2%
8. Marubeni Corporation 1.0%
9. Mizuho Securities Co., Ltd. 1.0%
10. Resona Bank, LTD. 0.9%
Stock information (as of September 30, 2011)
(except 957,917 Shares held by NIPPON GOHSEI)